Four major Japanese carmakers will invest 150 billion baht in Thailand's electric vehicle (EV) industry over the next five years, government spokesman Chai Wacharonke said on Monday.
Toyota Motor and Honda Motor will invest about 50 billion baht each, while Isuzu Motors will invest 30 billion baht and Mitsubishi Motors 20 billion baht, he said, citing information from the Board of Investment.
Mr Chai said the production of electric pickups will ramp up over the next few years as investment from the Japanese carmakers supports Thailand's transition from combustion engines to EVs.
This follows talks between Prime Minister Srettha Thavisin and seven Japanese car manufacturers during his trip to Japan where he attended the Commemorative Summit for the 50th Year of Asean-Japan Friendship and Cooperation in Tokyo last week, Mr Chai said.
Mr Chai said Japanese car manufacturers have confirmed they will use Thailand as their major production base in the region and the Thai government is ready to support their shift to modern car technology to reduce carbon dioxide emissions.
The Japanese carmakers also proposed battery swapping systems for commercial vehicles, he said, adding the government is keen to promote the business environment here to investors from Japan.
Measures include a visa-free policy for short business trips for the promotion of trade, investment, and business between the two countries from Jan 1 until Dec 31, 2026.
The government believes Japan can help drive and develop industries which Thailand aims to promote, including EV manufacture, the biomedical industry, the digital industry, infrastructure, agricultural development and human resources development.
"The prime minister emphasises that Japanese car manufacturers can play an important role in helping Thailand to become a leader in EV manufacturing in the region," Mr Chai said.
"Thailand is keen to cooperate with Japanese carmakers who want to expand investment in the country to create mutual benefits for the EV industries of both countries," the spokesman said.
Chai: Production of pickups to increase
The Federation of Thai Industries expects Thailand to produce 2.5 million vehicles in 2030, with 70% next-generation cars based on internal combustion engine technology, and the rest zero-emission cars in the EV segment.
Auramon Supthaweethum, director-general of the Department of Business Development, said that between January and November, a total of 612 foreigners had received permission to invest in Thailand under the Foreign Business Act (1999), a 15% increase compared to the same period last year.
During the period, foreign investment was valued at 98.28 billion baht, a 13% reduction compared to the same period the previous year, creating jobs for 6,086 Thais, or a 22% increase, she said.
The largest number of foreign investors were from Japan (129), with 30.1 billion baht in investment, followed by 95 investors from Singapore with 22.2 billion baht in investment.
Another 95 came from the United States with an investment valued at 4.23 billion baht, 56 from China with an investment worth 15.8 billion baht and 26 from Hong Kong with an investment worth 5.8 billion baht, Ms Auramon said.
Most foreign businesses that received permission during the period respond to Thailand's needs for infrastructure development and the government's policy to increase the country's competitiveness, such as electric rail projects, software development, online platform development and petroleum drilling, she said.
